retirement from trimet

HR-408 Retirement: Union Employees by Stephanie Lawrence — last modified May 09, 2012 12:43 PM Retiree medical, retiree dental, retiree life insurance, retirement party, pension estimate TO PRINT CLICK HERE Retirement:
Union Employees A TriMet employee who leaves TriMet employment is considered retired if he/she has met vesting requirements (years of credited service) and is age 55 or greater. The vesting requirement for union employees is 10 years. The normal retirement age is phasing down from 60 to 58. The TriMet/ATU Working & Wage Agreement gives the following schedule: Effective Date Normal Retirement Age December 1, 2000 Age 60 December 1, 2002 Age 59 December 1, 2004 Age 58 Your Health & Pension Benefits All vested employees may take early retirement at age 55 with full health benefits. Full pension benefits are not available until the normal retirement age. If the pension benefit is disbursed before the normal retirement age, it is actuarially reduced. The employee may choose whether to begin disbursement early at a reduced rate or wait until the normal retirement age for the full amount. The Executive Director of Finance and Administration administers the retirement program. RETIREMENT PLANNING We encourage all employees to plan retirement well in advance. Thoughtful retirement planning can reward you with financial security and the freedom to enjoy personal interests and loved ones. One opportunity lies with your deferred compensation plan, which allows employees to build retirement savings with pre-tax dollars through payroll deduction. In 2010, an eligible employee may withhold a maximum of $16,500 a year through payroll deduction. Employees age 50 or more may contribute $22,000. A catch-up provision allows employees within three-years of their normal retirement age, as defined by the labor agreement, to withhold an additional amount. Call Payroll for information. Retirees are eligible for medical, dental, and vision coverage through retirement. It is essential, however, that as soon as the retiree or spouse is first eligible for Medicare, he/she must take the following actions: To be eligible for continued health benefits from TriMet, retirees and eligible spouses must select Medicare Parts A and B when first eligible. When you become eligible for Medicare, Medicare is your primary insurer for medical costs and your TriMet medical plan is secondary. The TriMet plan continues to cover dental, vision, and prescription costs as outlined in the plan. Retirees who retire on or after February 2, 1992, must enroll in a Medicare risk plan, currently Kaiser Senior Advantage or PacifiCare Secure Horizons. By enrolling in one of the Medicare risk plans, TriMet will reimburse you for the actual cost of the monthly Medicare Part B premium. The TriMet plan continues to cover dental, vision, and prescription costs as outlined in the plan. The medical coverage for the surviving spouse or domestic partner and qualified dependents of a union retiree will continue past the retiree's death for ten (10) years. If you participate in the voluntary life insurance program, you can arrange with Standard Insurance Company to convert voluntary (supplemental) life insurance by arranging to pay premiums. Other benefits (except the bus pass and a reduced group life insurance benefit) cease at retirement. The remainder of this section explains the actions and decisions required of you immediately before retirement. RESPONSIBILITIES & PROCEDURES Ample notice and proper procedure are needed to ensure that payroll, benefits & all other matters are in place for the retiree. Responsibilities are noted below: Person/Department Action Employee Notify your supervisor or station manager of your retirement date (in writing) at least 60 days before your last day of work. Supervisor or Manager Inform the employee of retirement procedures. Refer the person to the Finance Department at 503-962-4820 for detailed retirement information. Give the following information from the Human Resources Manual to the employee: Retirement section Questions and Answers for Employees Leaving TriMet Employment (from Separation from Employment section) The pension plan for union employees is stated in The TriMet ATU Working & Wage Agreement. Notify the following person or department about pending retirements: Payroll Benefits Administrator Finance Department 503-962-4820 Security Prepare a Personnel Order and send it to Human Resources. Be sure to fill out: Eligible for rehire? "yes" or "no". If no, write a comment or refer to the personnel file. Discuss with the employee priorities for concluding work responsibilities. If the employee has at least ten (10) years of service, discuss retirement recognition (see guidelines and instructions under Retirement Recognition in this section. Ask the employee whether he/she wants a clock or the commemorative gift (in addition to a $200 gift certificate). Ask if he/she would like a retirement celebration (employee's decision) and if so, what kind. Call 503-962-3035 or send an e-mail to webberk@trimet.org giving an account numbers, the employee's name and years of service, and choice of gift (commemorative or clock). Arrange with the employee for the transition of tasks & information, including the employee's electronic files. Benefits Administrator If the retiring employee is enrolled in voluntary (supplemental) life insurance, mail the conversion package. If the employee wants to continue voluntary life insurance after retirement, he/she must arrange with the insurance company to pay the premiums. Director of Financial Services Send information about the deferred compensation plan to the employee. Discuss retirement information with the employee and respond to questions. Calculate the pension benefit and discuss distribution options. Employee Work with all the preceding offices to complete forms and requirements. Decide and act upon the choices discussed under Important Decisions in this section. Supervisor or Manager Submit the completed Time Record to Payroll before the last day of employment so Payroll can prepare a final check. Payroll's fax number is 503-962-5481. Collect all TriMet property from the retiring employee. Send the retiring employee to the security badging station to turn in the active employee security ID badge, where it will be exchanged for a retiree badge. The station is open on Monday afternoon between 2:00 pm and 4:30 pm, or call for an appointment at 503-962-5803. Security Issue a retiree identification badge to replace the active employee security identification badge. Family cards remain the same. Payroll Compute the final paycheck. RETIREMENT RECOGNITION Union employees who retire after at least ten (10) years of service receive a $200 gift certificate, a choice between a commemorative gift or a clock, and a celebration (if wanted). The employee decides whether to have a celebration and may suggest what type of celebration is preferred. The cost of a celebration is up to $75 and is paid from department funds. Funds exceeding $75 can be obtained through employee contributions. COMMEMORATIVE GIFT OR CLOCK Call 503-962-3035 or send an e-mail to webberk@trimet.org to give an account number, the employee's name and years of service, and the choice of gift (commemorative or clock) so the gift can be personalized. Submit this information at least two-weeks before its presentation to the employee. CELEBRATION A retirement reception should be organized through the employee's department in collaboration with the employee's wishes. All expenses will be incurred by the employee's department and through employee contributions, if needed. IMPORTANT DECISIONS At retirement, you are asked to make decisions, some of which have long-term consequences: Pension Distribution The choice between a single life annuity or joint annuity may be your most important decision. The first option pays the full amount determined by the pension formula during the life of the retiree only. The second option reduces the benefit over the retiree's life so a 2/3rds benefit can continue after the retiree's death for the surviving spouse. Your accountant, investment counselor, or estate attorney can help you evaluate choices in view of your long-range plans. Finance at 503-962-4820 can answer questions and provide authorization forms. Remember, once you have begun drawing pension benefits, it is not possible to change the distribution option. Health & Life Insurance Your health benefits (medical, dental and vision coverage) continue into retirement. Your employer paid group life insurance benefit is $10,000 for employees who have retired since July 1, 1999. If you wish to continue supplemental (voluntary) life insurance, call the Standard Insurance Company to arrange payment of premiums. Deferred Compensation Plan Call your deferred compensation carrier to discuss options. You can leave the plan where it is, roll it over to an IRA, or develop a distribution payout plan that meets your individual needs. You will want to consider payment amounts and dates of distribution (funds are taxed in the year received). Union Membership Decide whether to continue union membership. BACK TO TOP Revised: June 9, 2011